How to Take the Bite Out of Hiring Incentives

Employers are “putting on the dog” to attract new employees. There are sign on bonuses, enhanced health benefits, flexible schedules, better development programs, and more. The lack of talent is driving this. According to the Department of Labor, there are 4.2 million fewer workers and 10.9 million job openings. This demand is also being driven by the demands of those that are available for hire. Is all this an innovative idea or just an expensive trend with no real ROI?

The Answer

Yes and No. In the short run, the new hire lands a job, gets added incentives, and additional money to come to work for you and you fill a void. If the new hire stays, of course, that is a long-term investment and a good ROI. Unfortunately, according to an article in HR Magazine, new hires are staying for short periods of time and then moving on to the next sign on bonus offering. Turnover is already an expensive endeavor, sign-on money seekers make for a more expensive hiring strategy and pours salt into the wound of your crushed, well-meaning heart.

Other hiring incentives fair better. For example, offering developmental programs and educational benefits have proven to be retention building strategies. In addition, these programs help make an organization’s succession bench stronger. These types of programs are clearly good for both your short- and long-term ROI and a winning strategy for the employee, the organization, and customers.

Some hiring incentives benefit some, but not others. Childcare is an example. Back in the day, the idea of onsite childcare would be brought up only to be swiftly tabled due to concerns of risks and expensive insurance to cover them. Now onsite childcare is in the banter around incentives often. While childcare is a topic that doesn’t affect every employee, it is indeed an important consideration. Providing this “perk” would allow many people to work that otherwise may not be able to do so because of childcare concerns.

While streamlining the hiring process is not necessarily an incentive, it can help employers to move faster to take advantage of a shorter hiring cycle as today, they must move quickly so as not to lose a viable candidate. However, again, the voice of reason must come into play. For example, is it better to lower educational requirements or to throw out drug tests? Is it better to lower experience requirements or not check references? Clearly, barking up the wrong tree when trying to find good candidates is not a good idea.

Further, keep in mind that many would be hires are seeking meaningful work. Therefore, just offering sign-on bonuses or higher wages won’t work as they have nothing to do with meaningful work, development, career building, or succession planning. An organization must offer incentives that attract the type of candidate and long-term employee that will be beneficial to the organization’s productivity, teams, customers, and brand. These are incentives that take the bite out of poor hiring incentives. These are the strategies that build your reputation and reputation will build your bottom line.

Summary

Part of the answer is to offer wise incentives. Some upgrades to incentives have been a long timing coming. The message is to select your candidates and organizational incentives wisely.

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